03 - teixeira...coolhunters webcizenships 29072015 jadebteixeira 24 newwaystounderstandconsumers...
TRANSCRIPT
Innova&on to meet changing consumer needs
J. André Teixeira, BSc, MSc, MBA, PhD Execu&ve Professor, Innova&on
Antwerp Management School, University of Antwerp, Belgium Lorange Ins&tute of Business, Zurich, Switzerland
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Five Innova&on Clichés • Think out of the box
• Innova&on is a must
• Act local, think global
• Consumer-‐led innova&on
• Follow trends, research the market
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“Thinking out of the box”: The world’s favourite cliché
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2, 4, 8, 16, 32, 64, 128
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8, 5, 4, 9, 1, 7, 6, 3, 2
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First pre-‐requisite to achieve great innova=on: Avoid fixedness
Marilyn Monroe’s skirt scene
Einstein’s tongue
Peace symbol
Mickey Mouse profile
Mercedes logo
Olympic rings
Eiffel Tower
Andy Warhol’s Che Guevara
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First pre-‐requisite to achieve great innova=on: Avoid fixedness
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Fixednesses
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Nonsense is nonsense only when we have not yet formed
the point of view from which it makes sense
The Dancing Wu Li Masters: An Overview of the New Physics
Innova&on, the new business mantra
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Innova&on, the new business mantra
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The other mantra is “Global”
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Can innova&on be global within FMCGs?
Some food for thought
There is no
such thing
as a globa
l consumer
Huge middle classes emerging
Demographics are upside down Life expe
ctancies and life e
xpecta=ons Habits a
s key drivers
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Consumers are essen&ally local
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Huge middle classes emerging
• The surge of an Oriental model • Globalized Asian product profiles • GINI coefficients (wealth distribu&on) changing rapidly
• Aspira&ons becoming more domes&c • Fusion is the name of the game
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Life expectancy and life expecta&ons
% Growth 1960-‐2010 M/F
Life expectancy 2010 F
Difference to Belgium 1960, 2010 F
China 105.2 76.8 35.8, 5.9
India 57.2 67.6 32.1, 15.1
Brazil 31.9 76.0 16.7, 6.7
Mexico 33.2 79.2 14.4, 3.5
Turkey 43.0 74.2 21.3, 8.5
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Life expectancy, expecta&ons and lifestyles
• If you were 50 in 1960 living in a country where life expectancy was 60, in average you had 10 years to live.
• If you are 50 in 2015, in that same country life expectancy is now 80. So, you have in average, 30 years to live.
• Deduct 20 (30 minus 10) from your 50 and chances are…
• Your lifestyle at 50 is equivalent to that of a 30 year old, fihy five years ago.
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Demographics reversed
“Emerging” markets? Sales in China, India, Brazil: #1, 2, 3 in auto, cell phones, toiletries, etc.
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Gender blurring
• The male / female lines are being progressively erased by design thinking and women’s new role in emerging economies
• In FMCGs, this tendency is most remarkable – From foods for “real men or real women” to foods for real people
– Gender-‐blind fragrances – Male cosme&cs
• Fast changes in role playing lead to a new legacy being built
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Habit, the greatest marke&ng challenge
"Become your customers’ habit ... not their choice.” Neale Mar=n
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Some hypotheses
• Consumers know what they want. They do not know what they will want
• Social mobility brings “scrimp and splurge”
• Func&on follows form vs. form follows func&on
• New ways to understand consumers 29072015 JAdeBTeixeira 20
Want and will want
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What next?
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“Scrimp and splurge”
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Fast track innova&on “Idea&on Speed Da&ng”© S.I.T. Consumer engineering “S&rring” commimees Mul&disciplinary analysis Foresight labs Habit assessment Mul&cultural tools Focus(ed) groups:
Early adopters Opinion formers Trend semers Category travelers
Ethnographic studies Mnemonics Rituals Cloud communi&es Buzz networks Cool hunters Web ci&zenships
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New ways to understand consumers
Emerging trend
Old News
User awareness 0 100
Fireworks Bandwagon
Pre-obsolete Nostalgia
Users, trends and NPD
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Emerging trend
Old News
User awareness 0 100
Fireworks Bandwagon
Pre-obsolete Nostalgia
Users, trends and NPD
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Compe
&&ve Posi&on
Diffe
ren=
ated
Not differen
=ated
Price Market Premium
Clients’ needs, desire
s, expecta&o
ns
Relevant
Less
relevant
Extract raw materials
Manufacture goods
Deliver services
Stage experiences Customiza=on
Commodi=za=on
The economic value chain of goods, services and experiences
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Emo=onal iden=ty and Credibility
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The Paradigm of Innova=on in Consumer Goods involves answers to 4 ques=ons
Innova=ve Idea
?
?
?
?
New Users
New Benefits
New Channels/Geographies
New Occasions
Answer YES to one or more of these ques=ons and you will probably have a good idea
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The innova&on paradox
• The same people who want the latest gadget, the most modern technology, the best medical amen&on…….
• …..wish everything were just like mother nature intended, with the added benefit of:
– sustainability – ecological balance – renewability of resources, etc.
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The food innova&on paradox
• The same folks who want the latest
gadget, the most modern technology,
the best medical amen&on…….
• …..wish their food tasted just like
grandmother made it…
– and very few grandmothers were
chemical engineers…
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Home made
Commercial
Convenience
Tech
no
log
y S
tre
tch
NWH * perception
Se
nso
ry
Str
etc
h
* NWH : Natural, Wholesome, Healthy
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Mother Nature’s greatest advantage
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Consumer expecta&ons
• “Natural” driven by un-‐natural criteria – Standard dimensions – Standard colours – Instant ripening – Uniform taste and smell – Seasons erased
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Consumer-‐centricity • The old paradigm was a one-‐way rela=onship: Brands
speaking to consumers in the mainstream media was the voice. The new paradigm is different; it's a two-‐way rela=onship: consumers want to be heard and the brand needs to respond
• Social media is a major vehicle • Consumers are vo=ng with their shopping cart for brands
that demonstrate that they're listening to the poten=al benefits consumers are looking for in products
• There's recogni=on that if a brand doesn't evolve to address consumer needs, they'll be lel behind. The role of the retailer is to balance their needs with consumers
• Ingredients are a major concern
Consumer Concerns with Food Ingredients
• Three types of concerns: – Medically driven ingredient concerns (eg, gluten-‐free, foods for people with diabetes)
– Ingredients appropriate for specific dietary choices and lifestyles (eg, vegan, kosher)
– Ingredients that represent an "absence of nega&ves" (eg, GMO ingredients, and ar&ficial sweeteners, flavors, and preserva&ves)
Food Science and Technology • The ul&mate value adding factor in the economic chain of foods • From the farm to the plate on the table, many areas of science and technology:
– Soil Science – Meteorology – Plant Science – Animal Husbandry – Biotechnology – Agricultural Engineering – Processing Technology – Food Engineering – Food Science and Technology (Chemistry, Biochemistry, Microbiology, Physical Chemistry, etc...) – Nutri&on – Diete&cs – Sensory Science – Anthropology – Social Sciences – Neurobiology – Psychology – Home Economics – Food Law
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However, the science and technology needed to feed, sa&sfy and indulge the
world popula&on will somehow be a kind of “closet” technology.
So far, most consumers wanted to take advantage of the plen&ful supplies, the safety, the variety and diversity of food offerings,
without thinking or being told about the technology behind them.
Compe
&&ve Posi&on
Diffe
ren=
ated
Not differen
=ated
Price Market Premium
Clients’ needs, desire
s, expecta&o
ns
Relevant
Less
relevant
Extract raw materials
Manufacture goods
Deliver services
Stage experiences Customiza=on
Commodi=za=on
The economic value chain of goods, services and experiences
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Emo=onal iden=ty and Credibility
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Transparency from the
farm to the dining table
Food Innova&on
• In Food innova&on, the consumer-‐centric approach is a must
• Understanding new agendas is essen&al
• The transparency of the food chain is cri&cal
• An&cipa&ng trends by scanning many sources
• Example: – Emerging food trends:
• Whole grains becoming the new normal
• African heritage cuisine goes mainstream
• Plant foods, old and new • Personalised flavour preferences through herbs (Baharat, Provence, etc.)
• Cultural condiments (kimchi, pickled vegetables, preserved lemons, etc.)
Major predic&ons affec&ng Food NPD • Moving from:
• Internal R&D
• Problem solving
• Compe==on
• Teams of specialists
• Disease response
• Unhealthy but convenient
• Lab science
• Lifelong employment
• Recyclable packaging
• Breeding and cul=va=on
• Measuring taste
• Acceptable performance (heart,
diges=ve, beauty, etc.)
• Moving towards:
• Networked innova=on
• Dilemma sensemaking
• Compe==on and coopera=on
• Transdisciplinary individuals
• Beper than healthy
• Portable and nutri=ous
• Embedded innova=on
• Serial careers
• Smart packaging
• Synthe=c design
• Modeling sensory percep=on
• New fron=ers of performance (cogni=ve, visual acuity, etc.)
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Ea&ng and Believing • Shared values: Consumers want to know that a food company has similar values related to issues
such as sustainability and social consciousness.
• Trust and ultra transparency: Consumers want to trust a food company, which is proven by transparency taken to even greater levels.
• Cleaner and clearer food labels: Clean food labels with few ingredients are in demand, but consumers want these labels to be even more simple and clear.
• Third-‐party cer&fica&ons: Consumers want proof of sustainability.
• Food supply chain traceability: People want to know where food ingredients come from, down to the specific farm.
• Profit to be associated with doing good: The fastest-‐growing brands are linking profits made by customer purchases with doing good, such as suppor&ng a village or dona&ng items to low socioeconomic popula&ons.
• Grocery store chains to partner with them in promo&ng health: Consumers want to know that their grocery store is on their side, helping them achieve their total health goals.
Changing Consumer Needs
Ea&ng and
Believing
Shared values
Trust and Ultra-‐
transparency
Clearer food labels
Third party cer=fica=ons
Food supply chain
traceability
Profit associated with doing
good
Grocery stores as
promoters of health
US Na&onal Restaurant Associa&on trends for 2015 (1300 chefs surveyed)
• Among the top 100 food trends (those which at least 50% of chefs iden&fied as a hot trend), whole grains placed prominently throughout the list:
• #4 Healthful kids’ meals • #5 Natural ingredients/minimally processed food • #11 Non-‐wheat noodles/pasta • #12 Gluten-‐free cuisine • #13 Ancient grains • #14 Whole grain items in kids’ meals • #17 Nutri&on • #26 Non-‐wheat flour (e.g. millet, barley, rice) • #27 Simplicity/back to basics • #34 Quinoa • #39 Ethnic Flour (e.g. teff) • #41 Nose-‐to-‐tail/root-‐to-‐stalk cooking (e.g. using en&re animal/plant) • #46 Black/forbidden rice • #80 Farro • #94 Asian noodles (e.g. soba)
US Na&onal Restaurant Associa&on trends for 2015 (1300 chefs surveyed)
• New to the list: Focus on natural ingredients and minimally processed food (#5)
• Grain-‐based meal: building blocks of meatless/vegetarian items (#32) and ethnic cuisine (such as ethnic inspired breakfast items, #16, or ethnic fusion cuisine, #61)
• One unifying theme for 2015 is grain variety. Indeed, while the gluten-‐free fad is losing some of its steam compared to previous years (-‐7%)
• Chefs are including other ancient grains (such as naturally gluten-‐free quinoa, amaranth, millet, and teff), as well as pasta made from non-‐wheat sources, such as brown rice, buckwheat, or quinoa
• Asian noodles (such as the tradi&onal soba noodle, made from whole grain buckwheat) are also gaining popularity (+5%) this year
• Whole grain items in kid’s meals (the most popular kids’ meal trend behind healthful kids meals) took #14 in the top 20 food trends, placing above fruit/vegetable kids’ side items (#19), kids’ salads (#43), and oven-‐baked items in kids’ meals (#53)
• From exo&c ingredients and ethnic flours, to the classic pantry staples (56% named oatmeal as a perennial favorite), whole grains are stepping into the spotlight in 2015
TRENDS IN FOOD R&D So, how is R&D coping?
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Food R&D and Innova&on • Seamless integra&on of Agricultural Sciences with Food Science and
Technology
• Technologies consumers do not know they will want
• Availability, Acceptability and Affordability
• Capitalizing on food origin (Australia, a great “D.O.C.”)
• Consumer-‐centric, not necessarily consumer driven
• Fact-‐based real science
• Crusade against the fact-‐free environments
• Alert against “pop science” 29072015 JAdeBTeixeira 46
We are going to starve to death, but we will be perfectly “healthy”
by the =me we die
Food is like love. All you need is sanita=on, varia=on and
modera=on